Manufacturing Takes Hit From Trade War

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as manufacturing takes hit from trade war. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

US futures point to slightly higher open

U.S. stock index futures were slightly higher Monday morning.

The S&P 500 (SPY) ended just below the flatline, losing -0.01% today. Sector advancers led decliners 7 to 4 as shown below in the sector graph. Consumer discretionary (XLY), consumer staples (XLP), energy (XLE), financials (XLF), real estate (XLRE), technology (XLK) and utilities (XLU) each had small gains of less than 1%. Communication services (XLC), healthcare (XLV), industrials (XLI) and materials (XLB) each suffered minor losses of less than 1%.

The Dow Jones index added +14 points (+0.06%) to close at 26,949. The Nasdaq lost -5 points (-0.06%) to settle at 8,112.

Manufacturing Takes Hit From Trade War

Stocks ended flat Monday as manufacturing data hits multi year lows.

Manufacturing activity in Germany fell to its lowest level since the financial crisis this month, data from IHS Markit showed. Germany’s services sector also grew at its slowest pace in nine months. Overall, manufacturing in the euro zone fell to a more than six-year low while services grew at is slowest pace in eight months, IHS Markit said.

The U.S. manufacturing sector hit a five-month high in September, while the services sector grew at its fastest pace in two months, according to data from IHS Markit. However, IHS noted the manufacturing data remained among the weakest since 2016. “Prospects also look gloomy, with inflows of new business down to the lowest since 2009.”

The escalated trade war between the U.S. and China has taken a big bite from the manufacturing sector, which once was considered one of the biggest winners under the Trump administration, scoring big growth in employment and activity.

Key Takeaways…

I took the following CNBC screenshots today regarding can calm be trusted and driving the action:

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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S&P 500 Sector Graph

Manufacturing Takes Hit From Trade War

S&P 500 (SPY)

Manufacturing Takes Hit From Trade War

Communication Services (XLC)

Manufacturing Takes Hit From Trade War

Consumer Discretionary (XLY)

Manufacturing Takes Hit From Trade War

Consumer Staples (XLP)

Manufacturing Takes Hit From Trade War

Energy (XLE)

Manufacturing Takes Hit From Trade War

Financials (XLF)

Manufacturing Takes Hit From Trade War

Real Estate (XLRE)

Manufacturing Takes Hit From Trade War

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map


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